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Bellefontaine Ohio Obamacare and health insurance- Alan Galvez InsuranceIf you're searching for Ohio health insurance, chances are you've come across the term Premium Tax Credit or Subsidy. If you haven't or need more information about the Tax Credit, you need to read on as it's pretty important stuff (and could really reduce the cost of your health insurance). 

What the term Premium Tax Credit (Subsidy) means

The Affordable Care Act provides a new tax credit to help you afford health coverage purchased through the Marketplace. Advance payments of the tax credit can be used right away to lower your monthly premium costs. If you qualify, you may choose how much advance credit payments to apply to your premiums each month, up to a maximum amount.

If the amount of advance credit payments you get for the year is less than the tax credit you're due, you’ll get the difference as a refundable credit when you file your federal income tax return. If your advance payments for the year are more than the amount of your credit, you must repay the excess advance payments with your tax return.

Most people we work with for Ohio health insurance choose to use the entire credit to reduce their monthly premium. 

The amount of tax credit for 2016 will depend on 2015 household size and income. 

Here's how we determine premium tax credit eligibility

When working with clients, we've developed a straightforward process. Here's the steps and what you can expect when working with us:

Step 1- Determine whether or not you are eligible for the tax credit.We determine whether eligible or not by using a chart that gives ranges of incomes and family size. If you fall within the income range for your household size, then you potentially qualify for a tax credit. If eligible for tax credit, then we would use the Marketplace (only place you can do this). If not eligible, we would look at plans outside of the Marketplace. You can read more about Marketplace vs. Non-Marketplace (also called On-Exchange and Off-Exchange) in a previous article. 

Step 2- Determine amount of tax credit. We have an estimator where we plug in ages, household size and income and county of residence and get an estimated tax credit amount.

Step 3- Run proposals and subtract the estimated tax credit from the total premium for each plan option to come up with the monthly premium you would pay. 

It's important to note that the Marketplace application will determine the final amount of the credit. But for many situations are estimates are pretty close. 

There's also an option to reduce other costs such as deductibles and out of pocket expenses

Besides premium tax credit, the Marketplace also offers option to reduce out of pocket costs such as deductibles and out of pocket expenses. The deductible is the amount you pay first before the insurance company pays and the out of pocket is the total amount you will pay. This often includes your deductible. We often refer to this as "worst-case scenario." 

This is also determined by using a different chart of ranges of incomes and family size. If you fall within the income range for your household size, then you potentially qualify for this reduction. This option is only available for Silver Plans, however. 

Here's an example of how this works:

You choose a Silver plan that has a $2,000 individual deductible and a total out of pocket of $4,000. Based on where your income falls within the range of incomes and family size, it's possible that your deductible could become $1,000 and your out of pocket $2,000. See where it helps reduce the total amount you would pay for your medical expenses? 

Our simple, straightforward process to determine eligibility and amount of the Premium Tax Credit has proven to help many of our clients. 

Do you need more information? Have questions how we can help you with your Ohio health insurance? Call Alan Galvez Insurance at (937) 592-4871 or contact us via our website. You can also visit our Ohio health insurance resources and request a quote
Posted 8:00 AM

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Alan Galvez Insurance
134 W. Columbus Ave.
Bellefontaine, OH 43311

 (937) 592-4871

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